SOFT DAO governance has kicked off with a multi-signature wallet solution in lieu of the standard token based governance. While this is not the traditional model, it was evaluated and deployed as a bottom up solution to governance decision making that is faster and lower risk than launching a token. Here was the specification:
- m of n parties can vote to approve or negate a decision
- Should be permanently accessible on the blockchain
- Should be able to own a set of contracts
- Should be able to engage in smart contract interactions with m votes approving
Several concerns come into play, one is where the proposal is stored. Many proposals exist in the form of forum posts or github commits. These services are hosted and managed by centralized entities, this means that these votes can be taken down or altered.
The next is how votes are conducted. Currently the most popular form of community engagement is for token holders to vote on governance proposals. This means that individuals or entities that have a large quantity of tokens have outsized influence on the votes. A one-person, one-vote model can provide for a leaner, less dramatic approval process.
The proposed solution is to have multi-signature transactions posted for approval where m=3 and n=10. A Gnosis Safe or similar can be used as the multi-signature solution and IPFS can be used to host any of the proposals. The link of the proposals to the transaction must be in a Base58 encoded format and so the IPFS hash (without the URL) can be converted and recreated to prove validity.
To decode an IPFS hex hash:
- visit https://www.convertstring.com/EncodeDecode/HexDecode
- Copy and paste the encoded hash into the search field
- Copy the decoded hash and paste it into a Cloudflare IPFS proxy URL